Overview

• The Federal Court found Qantas’s 2020 outsourcing of 1,820 baggage handlers, cleaners and ground staff contravened the Fair Work Act and was partly motivated to curb union bargaining power.
• The A$90 million civil penalty announced on August 18 follows a December 2024 agreement under which Qantas paid A$120 million in compensation to the affected workers.
• Justice Michael Lee ordered A$50 million of the penalty to be paid to the Transport Workers’ Union in recognition of its role in prosecuting the case, reserving A$40 million for allocation at a later hearing.
• The judge criticised Qantas’s aggressive litigation strategy and expressed hesitation over whether its public apologies and governance reforms reflect genuine contrition.
• This ruling compounds earlier legal defeats for Qantas, including a separate ACCC enforcement that led to about A$100 million in penalties and compensation for selling tickets on cancelled flights.